Is Vietnam going to Stop importing MIX in End of 2021?

Photo by IISD/ENB | Kiara Worth

According to the new regulation of Vietnam related to the 14th Conference of the Parties to the Basel Convention (COP14) held last year
and was resolved to amend the Convention Annex to add waste plastics to the treaty’s new regulations.
Along with an article of Pantech plastic recycling company of Vietnam mentioned that Vietnam will stop issuing new licenses
for the import of mixed waste and crack down on illegal shipments of containers of paper, plastic and metal scrap build up
at the country’s ports. And in order to prevent waste from entering Vietnam to keep the country from becoming a dumping site,
affecting the environment and people’s lives.

Even though, Waste-processing is a supplemental source of raw materials for Vietnam’s paper, plastic and steel industries.
“The demand for paper and plastic scraps as materials for production does exist, but this benefits only the processors, not the environment,” according to the government statement. Further, Pollution is a political risk for Communist-ruled Vietnam,
where nationwide protests have been held to save trees and against a steel firm accused of polluting the sea.

Following are the related announcement;

[Vietnam new import regulations]

On SEP 24, 2020, The Vietnam Prime Minister Hook announces that imports of the following two items will be stopped from DEC 31, 2021.

・ HS-CODE 4707.90.00 – Other. including unsorted waste and scrap

・ HS-CODE 2618.00.00 – Granulated slag (slag sand) from the manufacture of iron or steel

Under such circumstances, observance of compliance with the latest regulatory content in the export of plastic material is important,
also cooperation with government agencies, the legal system of each country through the recyclers of each country. Meanwhile,
should place the importance on continuing to investigate and manage of above. More, if the distribution of waste is done without understanding
the legal system of the home country or the partner countries, such distribution of materials may suddenly be interrupted. In order to avoid
such problems, we recommend that you investigate and manage the value chain of the route by which the materials generated in-house until
the final product. It is necessary to take a bird’s eye view of all distribution, including the processing capacity of the collection company
(ex. Equipment, drainage structure, etc.). Lastly, there is a question left for us to think that in the near future, Transparency of the recycling flow
is going to be a Must-Do policy for all or not.

However, many of Vietnamese paper mills have no longer import mixed paper in the past 2 years referred to information we heard from
some Vietnamese waste paper traders. Means Vietnamese companies are prepared and planned to minimize the impact for their industry already.

By the way, since J10 grade (or Japan Sorted MIX) is also exporting under the following HS-CODE (4707.90.00), there is a possibility
of being a target also. Unfortunately, the Unsorted Mixed paper is absolutely in the scope of prohibited when the new regulation is effective.

As optimism viewpoint, there are still chances for other countries in Asia regions to turn this situation into advantage.

If you would like to hear our forecast or what could be impact on the issue, please feel free to contact to sales@daiwashiryotrading.com

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